Cheque presentation. Left to right: Mr Benson Jambo (Ecobank), Mr. Vilipo Munthali (Financial Controller, Ecobank), Mr Henry Kwavale (ICRAF) and Mr. Mdowoka (District Commissioner and Guest of Honour)

Ecobank Malawi, a pan African Bank present in 31 countries, has pledged continued support to over 170 small holder farmers to plant trees in Ntchisi District, central region of Malawi. The project, where farmers will be receiving cash in exchange for investing land and labor, is aimed at promoting the planting of the indigenous M’bawa trees – one of Malawi’s flagship species – on half an acre of their land.

The program will capture and store harmful carbon dioxide out of the atmosphere. Together with similar programs all over Africa, this initiative will help slow down the rate of climate change across the globe. The trees will eventually serve as a source of fuelwood and timber for these rural families.

Ecobank has pledged $2,500 a year for the first three years of the project. The first Ecobank-supported payment to farmers was made in December 2009. The small incentive payments are based on the number of surviving trees and will encourage farmers to invest the necessary energy into protecting and nurturing the trees while they are young.

“The farmers are enthusiastic about the program and survival rates of seedlings to date are high,” says Kelsey Jack who is a Harvard University researcher analyzing the project’s outcomes to generate lessons for future tree planting programs for carbon sequestration in Malawi. The research will draw important lessons for the rest of Africa.

The project is implemented by ICRAF Malawi and Ntchisi District Departments of Forestry and Agriculture Extension.

The agreement with EcoBank is part of an ongoing research and development project that explores the different approaches to allocating and pricing land use contracts associated with payments for environmental services.

Ecobank Malawi Limited got involved after one of its Directors, Mr. Justin Chinyanta, attended a presentation about the project by Kelsey Jack at Harvard University and then linked up with the Malawi office.

“The Bank saw this as a good opportunity to invest in Malawi’s long term sustainable development as part of our commitment to social responsibility,” says Olufemi Salu, Ecobank Malawi’s Managing Director.

The project is directly in line with Ecobank’s charitable investments in other arenas – right down to the name: “EcoBank investing in eco-friendly local projects.” A meeting in July 2009 between the research team – led by Dr. Oluyede Ajayi of ICRAF – and EcoBank Malawi Limited confirmed the details of the agreement.

Mr Vilipo Munthali of Ecobank, (left) listens as Mr Yohane Manda (centre) explains his M’bawa tree investment at Ntchisi. At right is Mr Benson Jambo also of Ecobank Malawi.

Central Malawi was chosen because of the expected impacts of tree planting on the region’s environment. Unlike the north of Malawi, the central region has been heavily deforested partly due to tobacco production. However, unlike the southern region, land use pressure is not too high, so it is reasonable to think that farmers might be able to spare some land for tree planting if compensated for the environmental services that trees provide.

M’bawa (Khaya anthotheca) is a native hardwood species with a desirable long-term carbon storage profile and substantial economic benefits to the contract holder after approximately 15 to 20 years. After 25 years, full compliance with the program will result in 10,000 tons of sequestered carbon.

Overall, compliance rates have been high. Out of the 50 seedlings distributed to every participating farmer, an average of 42 survived the delicate planting and establishment process where trees are most vulnerable. Nineteen farmers, or over 10% of the total number of participants, had all 50 trees surviving after six months. Survival rates vary significantly across the participating villages, suggesting local micro-climates and soils that impact survival combined with learning and encouragement among village members.